Investing in real estate can be a lucrative endeavor, especially in a beautiful and vibrant country like Jamaica which offers a diverse range of properties, from beachfront villas, luxury condos to plantation-style homes and rural estates.
Here is a general overview of the steps involved in buying real estate in Jamaica with the assistance of a real estate lawyer:
- Property Search: Identify the potential properties that meet your criteria and budget.
- Offer and Acceptance: Once you find a property you like, make an offer to the seller or their realtor. Once the offer is accepted, the details of your lawyer will be requested then the sales contract is drawn up and would be delivered to your attorney.
- Legal Due Diligence: Your lawyer will conduct due diligence checks on the property and review the sales contract.
- Deposit and other payment: Upon signing you will be required to pay a deposit (usually 10% of the purchase price) as well as half the cost of the vendor’s attorney preparing the Agreement for Sale upon signing.
- The Assessment of Agreement: All Agreement for Sale and land Transfer Forms are required to be submitted at the Tax Administration of Jamaica, otherwise called Stamp Office, for assessment of the duties and tax payable for the transaction. It is custom that the deposit paid is used to assist however it is really the vendor’s money that will be affected by the assessed transfer tax. The Stamp Duty fee however is usually a responsibility shared between purchaser and seller.
- Further payments: The sale agreement would require the balance purchase price to be paid by a certain time or an undertaking from your bank or attorney promising to pay the balance purchase money on certain conditions. A requirement of your application for a mortgage would involve providing a survey report and valuation of the property to be purchased. Those items are usually generated after the sale agreement has been signed. If you are approved for the mortgage, you must advise the bank of the deadline to deliver the undertaking to pay the balance purchase price.
- Closing: The final step involves lodging the relevant entity for the transfer ownership of the property to be registered, paying the balance of the purchase price, completing all relevant documents including letters of possession and delivery of keys.
A real estate lawyer or real estate attorney plays an integral role in the property transaction process in Jamaica. They have specialized knowledge of the legal complexities involved in buying and selling real estate.
It is always encouraged to use separate attorney for vendor and purchaser. For a purchaser, it is encouraged even more to use your own attorney when purchasing a new strata unit in a development.
The attorney acting for the purchaser provide valuable guidance throughout the process and protect the purchaser’s interest. Apart from explaining the sale process to you, included below are are some ways in which a real estate lawyer assists a purchaser in the sale process:
- Legal Due Diligence: A real estate lawyer will conduct a thorough due diligence process to ensure that the property is free of any encumbrances including liens and caveats. The lawyer will also search the title to confirm that the seller has the legal right and ability to sell the property being sold and that there are no outstanding issues with the title.
- Contract Prep/Review: If you’re selling your property your lawyer will prepare the sale agreement and the purchaser’s attorney will review the sales contract and ensure that all terms and conditions are fair and favorable to you. Your attorney will also advise you on what is needed to assist in the process.
- Negotiation: If necessary, your lawyer will negotiate with the other attorney to secure terms in the Agreement for Sale that protect your interest.
- Lodging of documents: The seller’s attorney will lodge the relevant documents at the relevant government agencies to enable the assessment of the transaction and transfer of title.
- Oversight: The purchaser’s attorney acts as a co-pilot in the transaction. The attorney will follow up with the vendor’s attorney, and generally monitors the transaction with a view of ensuring your legal rights and financial interest as purchaser are protected in the transaction.
- Closing Process: The attorney will oversee the closing process ensuring that all legal requirements are met, check the vendor’s calculations or demands to ensure its accuracy, and explain your responsibilities on completion.
